BG Exploration and Production India Ltd
Corporate Social Responsibility Policy for 2014-15
1. Introduction
The purpose of this policy is to set out the approach of BG Exploration & Production
India Ltd (BGEPIL) to Corporate Social Responsibility (CSR) in compliance with
Section 135 of the Companies Act, 2013 and the rules and notifications issued
thereunder (CSR Policy). This CSR Policy is for the financial year 2014-15.
1.1
About BGEPIL
BGEPIL is a company incorporated under the laws of Cayman Islands and has its
principal office at BG House, Lake Boulevard, Hiranandani Business Park, Powai,
Mumbai (which is a project and branch office). Its principal business comprises oil
and gas exploration and production, off the coast of Maharashtra. BGEPIL is part of
BG Group, a global gas major headquartered in the UK with operations in more than
25 countries.
1.2
CSR under the Companies Act, 2013
Under the Companies Act, 2013 (hereafter referred to as the Act), companies
(including foreign companies having a branch or a project office in India) that meet
certain prescribed financial thresholds are required to invest at least 2% of the
average net profits of the company during the three preceding financial years in
pursuance of its CSR policy. CSR, under the Act, essentially means and includes
development programs or projects (i.e. social investment) undertaken by a company
in the thematic areas specified under Schedule VII of the Act.
The Act also requires companies to constitute a CSR committee, formulate and
publish a CSR policy setting out inter alia the social investment projects undertaken
by the company, file an annual report on CSR activities in a prescribed format, and
institute a transparent monitoring mechanism for implementation of its CSR projects.
1.3
BG Group Global Social Investment Approach
BG Group is committed to investing in the communities and societies where we
operate. Our approach to social investment (SI) spending is to support projects that
build skills, employability and income-earning prospects where we work so that we
can deliver enduring benefits.
We do this through active partnerships with expert organisations and by working with
communities. A relatively minor proportion of our SI portfolio is dedicated to
charitable or philanthropic initiatives.
Our SI strategy focuses on long-term investments, particularly, multi-year projects
and partnerships. Globally, we concentrate investment in three areas of strategic
importance for us and the countries where we work: science, technology,
engineering and mathematics (STEM) education; vocational education and training;
and improving people's livelihoods.
1
2. BGEPIL’s CSR Vision and Focus in India
In line with BG Group’s approach to SI globally, BGEPIL’s vision for CSR in India is
to deliver enduring benefits and assist in meeting national sustainable development
priorities. To achieve this, BGEPIL will work within several thematic areas indicated
in Schedule VII of the Act, with the largest portion of our investment aligned with our
global SI focus areas.
The geographic focus of BGEPIL’s CSR activities will be in and around the areas
where we operate. To this end, we will continue to support local projects close to our
principal office in Powai and the shore base that we operate at Veshvi. BGEPIL will
also establish new partnerships and extend support to projects across Maharashtra.
3. CSR Expenditure for 2014-15
BGEPIL will spend an aggregate amount of approximately INR 37,290,000 on CSR
projects (refer Annexure) in 2014-15 in accordance with the Act.
In accordance with the provisions under the Act and BG Group’s Social Performance
Standard, the following activities are not applicable for inclusion in the CSR Policy or
reported expenditure:






Projects or programmes or activities that benefit only the employees of the
company and their families;
Any activities undertaken in pursuance of the normal course of business of
the company;
Investment in social impact assessment, mitigation or management activities;
Marketing, sponsorship or communications activities;
Payments made as part of legal settlements, such as compensation, fines
and penalties; and
Core business activities that may have a community or societal benefit, for
example payment of taxes and royalties and creation of employment.
Also, in accordance with the Act, any surplus arising out of the CSR projects or
programs or activities shall not form part of the business profit of BGEPIL.
4. Modality of Execution of CSR Projects
BGEPIL will partner with reputed non-profit organisations (Partners) that have a
strong outreach in Maharashtra and have more than three years of experience in any
one of the chosen thematic areas. An important consideration in the selection of a
Partner is compliance with all applicable BG Group Standards and Policies, including
BG Group’s Ethical Conduct Policy.
For projects near its shore base in Veshvi, BGEPIL will consider direct
implementation of projects in the event suitable partners are not available.
5. Projects and Partners for 2014-15
2
The specific projects for 2014-2015, including their objectives and modality of
execution, are listed in the Annexure to this CSR Policy.
6. Governance
A CSR Committee has been constituted by BGEPIL in accordance with the Act. The
CSR Committee is accountable to the board of directors of BGEPIL (Board). Its
primary role is to:




Formulate and recommend an annual CSR Policy to the Board
Recommend partners and projects for BGEPIL support, including amount of
expenditure for such projects, in accordance with the Act
Approve a transparent monitoring mechanism for CSR projects
Monitor and report on the implementation of the CSR policy
The members of this Committee are:





President and Managing Director, BGEPIL
Group Head of Social Performance, BG Group
Director, Policy & Corporate Affairs, BGEPIL
Vice President, Legal and Governance, BGEPIL
BGEPIL’s representative authorised to accept service on behalf of the
company
7. Monitoring and Evaluation
BGEPIL has put in place a monitoring process to track and evaluate the delivery and
socioeconomic impact of the funded CSR projects. For each project we support, we
select key performance indicators (KPIs) at three levels:



Activity indicators, which show if we are on track to deliver the activities in our
project plan (e.g. training delivered)
Outcome indicators, which tell us if project activities are making a difference
(e.g. training pass rates)
Impact indicators, which tell us the short to medium term impact of activities
resulting from project outcomes (e.g. number of people securing employment)
KPIs are tracked through quarterly, annual and / or end-of-project reports provided
by the Partners which are required to include details on progress against funded
activities and information on key achievements or any challenges or issues that may
have arisen in the reporting period and steps taken to address them. Oversight of
projects is also maintained through regular interaction with Partners and field visits
where applicable.
In addition to this, BGEPIL will closely monitor budget utilisation on a quarterly basis,
assessing them against activity indicators and the projected budget. BGEPIL may
also undertake independent audits of Partners to ensure rigorous financial
monitoring.
8. Amendments
3
This Policy may be periodically reviewed and amended by the CSR Committee with
approval from the Board.
4
Annexure
Projects and Partners for 2014-15
S.
No.
1.
Project Name
and Modality of
Execution
Yuva Parivartan
–
In partnership
with Kherwadi
Social Welfare
Association
(KSWA)
Schedule VII
Theme
Vocational
Training
Geographic
Focus
Mumbai, Pune
and Rural
Maharashtra
Project Objective
Project Overview and Implementation Schedule
To train disadvantaged youth in
vocational and life skills, helping
them successfully transition to
employment.
The Yuva Parivartan project will train low-income
youth in urban areas through three-month long
vocational training courses that are aligned with
market needs. In rural areas, the programme will
conduct condensed training modules through mobile
camps that last 20-30 days. Both modes of
implementation will connect youth to employment and
self-employment opportunities upon completion of
their training.
The twelve-month partnership will also help BGEPIL’s
NGO partner track the outcomes and impact of their
project, helping them understanding how and for how
long, lives are improved through the training and
employability programme.
2.
Second Chance –
In partnership
with Pratham
Education
Rural
Maharashtra
To enable girls who have
dropped out of school to
complete their education and
pass they Class 10 board
exams, and provide them with
wider learning and support
beyond academics.
5
This project will support delivery of the Second
Chance programme in three rural centres in
Maharashtra and the development and adoption of
digital curriculum materials over a twelve-month
period.
These centres provide a four-month foundation
course to prepare girls for Class 10. During the rest of
the year, the girls will undergo classes to prepare
them for their Class 10 Board exams. Once
completed, they will enter an alumni network that will
help support the girls as they pursue future education
and/or job opportunities.
The centres will also be equipped with computers and
digital content that will provide supporting curriculum
and life skills courses to help the girls and others in
their communities to obtain access knowledge and
information, helping young women in these
communities make informed choices and pursue
better livelihood opportunities for themselves and
their families.
3.
School
Enrichment – In
partnership with
VIDYA
Education
Powai,
Maharashtra
The Beyond School programme
provides school-aged children
from low-income urban areas
academic and extra-curricular
support to enhance their
educational attainment and
reduce school dropout rates
The Computer Learning
Resource Centre programme
provides training to improve
computer literacy and skills to
NGO beneficiaries and
community members
The Youth Programme provides
education and employability
support to disadvantaged youth
Beyond School: A twelve-month continuation of a
before and after school academic support programme
for children in classes KG – 7, Beyond School uses
innovative teaching methods to help students learn
core English, Math and Science concepts, as well as
computer and basic life skills. Students also receive
nutritional support daily and attend Saturday Clubs
that focus on experiential learning and team building
through excursions, sports and other activities.
Computer Learning Resource Centre: The project is a
twelve-month continuation of funding for computer
courses for all VIDYA beneficiaries and additional
community members. The Centres act as a resource
hub for the community, providing training that run for
one to three months on anything from basic
computers to advanced accounting.
Youth Programme: A yearlong continuation of a
project that helps school dropouts complete their
Class 10 & 12 board examinations under the National
Institute of Open Schooling. The programme provides
English language classes, certified computer courses,
life skills training and employment linkages.
6
4.
Maharashtra
Marine
Conservation –
Bombay Natural
History Society
(BNHS)
Environmental
Sustainability
Coastline of
Maharashtra
To identify Ecologically and
Biologically Significant Marine
and Coastal Areas (EBSAs)
along the coast of Maharashtra.
Utilising the EBSA approach, this two-year project will
employ various research methods (rapid
assessments, transect walks, qualitative/quantitative
studies) to assess the environmental importance and
vulnerability of species and habitats along the 700 km
Maharashtra coastline. The project will also assess
current socioeconomic activities and the potential for
new livelihoods activities in these areas.
Primary research will be conducted in Year 1, with
follow-up research, analysis and report writing in Year
2. The project will also train post-graduates in marine
conservation through experiential learning. The
resulting report will be published and can be utilised
by various local and international agencies, as well as
the Government of India.
5.
Civil Infrastructure
and School
Support – Direct
implementation
Rural
Development
Veshvi Village,
Maharashtra
To provide hygiene, safety and
school infrastructure in the
villages surrounding BGEPIL’s
shore base.
The year-long project in Veshvi aims to address
pressing concerns in the villages surrounding
BGEPIL’s shore base. This includes providing RCC
drain covers on open sewage lines, providing support
structures on local lakes, and providing local schools
with books, uniforms, shoes and playground
equipment.
6.
Hygiene and
Sanitation – In
partnership with
Pragya
Disaster Relief
Rural Uttarakhand
To provide toilets and sanitation
to areas affected by the
Uttarakhand flooding.
This three-month project sets up pre-fabricated toilets
to be shared by households and schools that have
suffered severe damage to their property, and have
been living in temporary conditions. The toilets will
help avoid open defecation and reduce risk of
disease and water contamination. Local community
members will manage the set-up and maintenance of
the toilet blocks.
7